I just did the math and if you use the AGR card, under the 50% bonus, you get 40.788 points per dollar. So for $1000, you end up with 40,788 points - worth $1182 dollars. Once you use those points, you get 2,039 points back with the rebate. So for $1000, you get $1182 dollars of travel and end up with 2,039 points in your account.
Now let's say you just buy the ticket normally, with cash. If you spend $1000 for a ticket, you'll end up with 3000 points in your account. So you end up with 961 more points, but $182 less travel.
961 points has a redeeming value of $28. $182 has a pretty clear value of $182. So I think it's safe to say that buying points is the clear winner here.
I have to respectfully disagree with you, cpotisch, and say 'it depends'.
A couple days ago, I had to come up with a tad over 4K points to get a 30774 point ticket. I'd have to look at my credit card account to remember how much I paid. It was about $125 as I recall.
So, I'll just use your $1000 example.
Assume I buy the $1000 worth of points...40778 points and use that to buy a 40778 point trip.
Now what do I get, all together?
1 trip,
1,000 points from using the AGR credit card (like other respondents in this thread, I don't think you get the extra 2,000 points from the CC when buying points)
5% point rebate (2,039 points).
Note: actually taking the trip on points -earns- zero points
Total points in the bank: 3,039
On the other hand, suppose I simply bought a ticket for $1,500 ($1,000 + 50% bonus points value). NOW what do I get?
1 trip,
4,500 points from the credit card purchase
3,000 MORE points when I take the trip (they're TQP points, too!)
3,000 MORE points if the trip coincides with 'double days'
750/1500/3000 MORE points if you've reached AGR Select, Plus, or Executive status
Total Points in the bank: 7,500-13,500
So, other than getting the 2039 point rebate plus $1000 CC points when buying with points, what else do you 'end up with'? Paying the $1500 gets lightens my wallet by and extra $500, but I get significantly more points for future travel, especially if double days and AGR bonus points for status!
This is a loser deal because of the extra $500 paid.
But consider only the 30% bonus level of points purchase... Here's the same calculations:
$546.65 buys 14,500 + 5,800 = 20,300 points (ie, 34.5 points per dollar, the 'standard' conversion rate)
You receive
1 trip,
547 points from the credit card purchase,
1,105 point 5% 'rebate'.
Total Points in the bank: 1,752.
Paying $546.65 cash gets: (same as 20,300 points)
1 trip,
1,640 points from the credit card purchase
1,093 MORE points when I take the trip (they're TQP points, too!)
1,093 MORE points if the trip coincides with 'double days'
273/547/1093 MORE points if you've reached AGR Select, Plus, or Executive status
Total Points in the bank: 2,733-4,919
This comes out a winner as I end up spending the same money but get more points in the end, even without double days or AGR status.
How many people can come up with $1000 to 'buy' a trip on points? Is it worth it to get the 50% bonus points but wait another 6-12 months or longer to earn enough other points to get the trip you want on points? That's a personal choice.
For me, I'd rather have to buy a 'handful' of points at whatever price to get the ticket I want while it's still priced at the lowest bucket or one step higher. That way, my trip is essentially free from CC use as well as travel and other points-earning opportunities, except for the $125 or so I just paid to buy some points to get the ticket. I'm a happy camper.